Dividend Bearing Checking Account FAQs
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What is a dividend bearing checking account?
When you have ownership in a company or organization and receive a profit back to you, that is a dividend. Why is that important? Because as a member of Numerica Credit Union, you are an owner. A dividend bearing checking account is simply a checking account that earns a dividend (aka a profit).
For some high-yield checking accounts, often known as reward checking, there are often requirements, or criteria, that you must meet in order to earn the high paying dividends. For Numerica, this would be our Sequel Checking.
If you don’t want to miss out on free money, make sure you meet your minimum qualifications on the account. Take a look at the Sequel Checking criteria to make sure you qualify for your dividends.
Numerica also offers a Premium Business Checking, which pays dividends based on balance tiers.
How do dividends work (from my initial deposit to dividend payment)?
Each night when the credit union closes, your balance is recorded. The credit union ninjas do their magic and figure out how many dividends you should receive on that balance (aka how much moolah you should be receiving back). But, we all know that checking accounts tend to ebb and flow. So, while you earn dividends daily, they are not paid out until the last day of the month.
What’s the difference between interest and dividends?
While these terms are often used interchangeably – they are very different.
Interest is either what you earn on your money by lending it (like a Certificate of Deposit) or it is the additional percentage you pay for borrowing money on a loan.
Dividends are a share of profits. As a credit union, our members earn dividends. The money they invest with us is in fact a share of ownership. The interest (or money) we pay to them (the owners) is a dividend.
How is the minimum balance determined?
Many other financial institutions require a minimum balance in order to receive dividends. Numerica’s Sequel Checking doesn’t require a minimum balance after the account is opened.
What fees do I pay for dividend checking?
While other places impose fees and then later waive them due to other factors or criteria, Numerica’s Sequel Checking does not have any fees associated with it. So, there is nothing to waive. In fact, Sequel Checking refunds you up to $25 of ATM fees per month, meaning even more money back in your pocket. We really have a thing against fees.
How is the interest calculated on a dividend checking account?
Assuming we’re referencing the dividends members can earn and not interest you pay on a loan, the formula you can use to calculate would be:
Balance X (APY/365) X days in the month = monthly paid dividends
Which is a better for me to earn money on my money? Sequel Checking or Bonus Saver?
This is like asking who your favorite child is! The answer really depends on what you are looking for.
Sequel Checking provides the ability to use a debit card, write checks, and complete online banking, while earning a higher dividend.
Bonus Saver is designed to help encourage you to save. Members are able to earn a higher rate in the Bonus Saver account by not making withdrawals and by making consistent deposits.
Really, they would make a great combo for spending and saving. You can always contact one of our helpful team members to talk through your options.
Does a business checking account pay dividends?
Can I have more than one dividend checking account?
You’re going to love Sequel Checking, but only one account is allowed per Social Security Number.
With that being said, you could still have access to more than one. For example: You could have your own Sequel Checking account and have a joint checking account with your spouse. (Why two accounts? This article about Joint Checking might shed some light on that!) But, you could also own a business and have Premium Business Checking which you’d earn dividends on as well.
Find out more by visiting your favorite branch or by giving us a call at 800.433.1837.